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Asked by the Senate Subcommittee on Europe and Regional Security Cooperation whether Moscow is now making more money from its sales of crude oil and gas than it did two months before the attack began, Hochstein said: "I can’t deny it".
agreed United State The European Union to ban imports Russian oil And they imposed mounting sanctions to punish Moscow.
While these moves have slowed global trading in Russian fossil fuels, they have caused global oil and gas prices to rise. On Thursday, the price of Brent crude approached its highest level in three months, exceeding $123 a barrel.
Hochstein indicated that the increase in global demand for oil from consuming countries with the lifting of the restrictions of the Covid-19 pandemic was "Much bigger and stronger than anyone expected".
At the same time, Russia was able to sell more shipments to other buyers, including major energy consumers China and India, by offering oil at lower prices than other exporters.
Hochstein said that while Russian sales to China and India have been at lower prices compared to supplies from other countries, higher global market prices mean Russia’s returns are likely to be higher now.
The International Energy Agency said in May that Russian oil revenues had risen 50 percent so far this year to $20 billion a month, with the European Union taking the largest share of its exports.
The EU ban is expected to apply to Russian oil fully at the end of the year, and that could lower returns.
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Asked by the Senate Subcommittee on Europe and Regional Security Cooperation whether Moscow is now making more money from its sales of crude oil and gas than it did two months before the attack began, Hochstein said: “I can’t deny it.”
agreed United State The European Union to ban imports Russian oil And they imposed mounting sanctions to punish Moscow.
While these moves have slowed global trading in Russian fossil fuels, they have caused global oil and gas prices to rise. On Thursday, the price of Brent crude approached its highest level in three months, exceeding $123 a barrel.
Hochstein noted that the increase in global demand for oil from consuming countries with the lifting of the restrictions of the Covid-19 pandemic was “much larger and stronger than anyone expected.”
At the same time, Russia was able to sell more shipments to other buyers, including major energy consumers China and India, by offering oil at lower prices than other exporters.
Hochstein said that while Russian sales to China and India have been at lower prices compared to supplies from other countries, higher global market prices mean Russia’s returns are likely to be higher now.
The International Energy Agency said in May that Russian oil revenues had risen 50 percent so far this year to $20 billion a month, with the European Union taking the largest share of its exports.
The EU ban is expected to apply to Russian oil fully at the end of the year, and that could lower returns.